Govt to create $26 Bn opportunity for IT firms

New governance model has a proven track record of being decisive, reform-oriented and business-friendly. The unprecedented mandate and the positive track record have instilled hope for an economic turnaround in citizens and investors.

The Central government’s investment in technology for the year 2014-15 is an estimated $26 billion comprising of investment in digitization, infrastructural improvements, push for manufacturing and technology in healthcare and agriculture, says a report by market research firm Zinnov.

The report, which was first published in Business Insider assesses the first 100 days of the Modi government and highlights the impacts it has had so far. Zinnov notes that the new government plans to take digitalization to the next level by implementing the digitalization of agriculture/PDS data, enabling e-governance and m-governance, facilitating the National Rural Internet and Technology Mission, using IT for real time information gathering, and the digitization of all government files, the report states.

According to Zinnov, in the past, the government has engaged big technology firms such as IBM, HP and Cisco for digitization projects. Projects on digitalization of India and showcasing India as the innovation hub and those involving next generation infrastructure will be executed by a focus on 3S - skill, scale and speed propelled by technology.

On the talent availability front, data shows that 85,000 Graduates from top tier engineering institutes, 1.2 million engineers graduated in 2014. Besides, over 4000 active technology startups 150 Startup incubators 49 Million SMEs operating in India also suggests the entrepreneurial mindset in India is growing, says the Zinnov report.

The government has already defined a three-pronged strategy to make India an innovation hub. Firstly through enabling skills by the establishment of more premier institutes such as IITs and IIMs and the development of innovation accelerators supported by innovation infrastructure. An innovative ecosystem fosters high quality research. Secondly, giving proximity to customers will accelerate and improve India centric product development. And finally, innovative ecosystem will also allow joint R&D efforts across industries for accentuated product development. MNCs have been leveraging the Indian innovation ecosystem to develop products for the Indian customers.

Until now, Technology MNCs have played a crucial role in the establishment of next generation infrastructure. The Indian government plans to invest $11 billion in the key focus areas to drive the next wave of technology-backed infrastructure growth. The key focus is to create national optical-fibre networks and to build 100 smart cities with high-speed digital highways along with national solar missions and national gas grids.

“The stage is all set to create long term sustainable growth and reposition India on the global map with strategies like minimum government, maximum governance; empowering the poor; digital India and relationship building with Asian nations.” said Praveen Bhadada, Senior Director, Zinnov.

The report notes that the new governance model has a proven track record of being decisive, reform-oriented and business-friendly. The unprecedented mandate and the positive track record have instilled hope for an economic turnaround in citizens and investors.